Regulators are being 'funded for action'

by Rebecca Pike09 May 2018

Funding for regulators as part of the federal budget means brokers should brace themselves for action, according to the Finance Brokers Association of Australia (FBAA).

Both the Australian Securities and Investments Commission (ASIC) and the Australian Prudential Regulation Authority (APRA) were allocated funds specifically towards the banking Royal Commission. They have been marked for $4.7million and $2.7million respectively.  

FBAA executive director Peter White said while the impact on brokers is unlikely to be major, the industry must be prepared for some changes.

He added, “Regulators are being funded for action and there is no doubt that findings from the royal commission will compel them to act decisively."

While he isn’t sure how much action will be directed towards the broking sector, he said, “I firmly believe it will not be life-changing.

“Over recent weeks, revelations around the behaviour of banks have been quite sensational, so I’d suggest much of the focus will be on those matters.”

White also said the budget impact overall should be mainly positive for homebuyers. He added, “While we always want to see more, any budget that provides confidence, gives people more money in their pockets and doesn’t scare people around issues like superannuation, can only be positive for our industry.”

He said the tightening of phoenixing laws and crackdown on cash economies are also positive measures, “It’s clearly an election budget, but as long as people feel secure they will spend and buy property, which is good for the economy.”

COMMENTS

  • by Fed UP 9/05/2018 4:07:47 PM

    Here's an idea - why don't we all just shut up shop and stop lending money to people all together ............

  • by When we used to be a Democracy 9/05/2018 4:15:09 PM

    Agree.
    No doubt they will eventually regulate to force those of us that wont write a reverse mortgage, to do so; but then slam us if the client changes their mind 10 years down the track.
    Then we will be responsible for what type of house the client buys.....ie we should have made them choose something smaller etc etc
    Whatever happened to "free will", and peoples right to choose their own destiny...making their own decisions.

  • by Jeff Mazzini 9/05/2018 4:48:03 PM

    Why wait to be told-

    Given that there have been issues identified in the Royal Commission for the Finance Mortgage Broking Industry and the Financial Planning Industry and given ASIC has moved to increase education levels of the Financial Planners to University Levels, one would naturally feel and think that all Finance Brokers minimum education levels will be lifted to the Diploma level as a minimum.

    Okay so there are many that feel current Certificate IV level is adequate and many writers are acting professionally, ethically and responsibly at that level of qualifications, I cannot see ASIC accepting this level would be adequate, going forward.

    AAMC Training Group has secured pathways to higher education levels, should people wish to advance to the University level and their are 7 credits awarded for those that have completed their Certificate Iv in Finance and Mortgage Broking Industry and their Diploma of Finance and Mortgage Broking Management. Financial Planners can also gain the same access for the Bachelor of Business after they have completed their Diploma of Financial Planning qualification, also.
    Talk to AAMC Training Group today where here to assist Finance Brokers and Financial Planners with workable solutions to enable them to continue their professional business models, ongoing.

    Disclaimer, Should you act on my suggestions as above AAMC Training will benefit from your actions, once off, however you will benefit ongoing for as long as you remain in your profession.
    The Royal Commission has highlighted some areas that need addressing and these are not insurmountable issues, as the clients still need increasing numbers of Finance Brokers and Financial Planners to guide them through the coming years.

    Contact us today info@aamctraining.edu.au, www.aamctraining.edu.au